All Forum Posts by: Terri Wyzkoski

A couple of questions:

1.  How old are they? 2. In what city and state do they live? 3. How much have they saved to live on?

These will help me answer your questions.

Gary, I'm assuming that PenFed holds the first lien on the property? Whoever has the first DOT, the Sr. Lender normally has language in their Loan Agreement that will negate your ability to obtain a 2nd DOT on the property without their consent. So, normally you'd seek a HELOC from the Sr. lender first. If that's not an option, then depending on the amount of equity, you could consider refinancing the property to do one of the following:

(i) conventional mortgage with another lender, setting up a 2nd DOT HELOC at the same time; (ii) a CRE residential investment mortgage setting up a 2nd DOT Comm'l HELOC at the same time; or (iii) a cash-out refinance using a CRE residential investment mortgage.

Phillip, if you have a conventional mortgage on the property, the loan agreement will likely negate your ability to get a HELOC without the Sr Lender's consent. That said, I'd recommend that you reach out to the Sr. Lender and ask if they'll provide with you a HELOC. This is the lowest-cost idea.

If not, reach out to me via email for other ideas.

Stephanie, I'm a 29-year veteran lender, now CRE mortgage broker. This is a slam-dunk if you have the down payment for the acquisition, especially since you already have the tenants. And, of course, if the lease income covers the proposed debt.

I can help you determine if you qualify, determine exactly how long a lease they'd need to sign to obtain the appropriate financing, underwrite it appropriately, give you an idea of the rate and terms you can expect to obtain, and introduce the relevant funding sources (if you qualify).  Reach out if you'd like.

Denver, it's quite straightforward to set it up yourself. However, it'll be much more efficient if you use a service like ZenBusiness, LegalZoom, or IncFile. They'll not only ensure you file the LLC appropriately, they'll prepare your Operating Agreement and obtain your EIN number for you. Of course, all of these are easy enough to do yourself. Seriously, this is a very easy process.

You're limited to "up to" 10 conventional residential mortgages, which may be less based on your DTI. However, you may take on as many commercial residential investment mortgages based on the lease-income from the properties as you like. However, the terms on these are typically 5-years and 25 year amortizations.

Hi Kelly, I'm a veteran lender, now CRE Commercial Mortgage Broker and Advisor. As an advisor, we provide guidance to investors on how to analyze each deal, how a bank or relevant funding source will underwrite the project (including LTV, DSCRs, etc), the rate you'd expect to pay on any specific project, and what to expect on specific types of assets.

All of our investors enjoy the benefit of our advisory services as part of a mentorship program.  Feel free to reach out to me if you'd like.

Kindest regards, Terri Wyzkoski

It's not prudent to make an offer until you have adequate information.  However, you most certainly could and should reach out communicating your interest in acquiring the property.  Interestingly enough, you may actually be able to acquire the property for much less than you initially anticipated offering if there is a situation related to the property about which you are unaware (probate, etc).

BTW, I love reonomy just for this type of strategy.  Good luck, and let me know if I can be helpful in introducing financing.

 I don't understand.  You have a lot of cash in your bank account?  But you don't have adequate cash for a down payment on a new investment? I'm not sure I follow your issue.